OIL
Brent oil prices are again rising this Wednesday morning, touching the highest level since the beginning of the crisis in Israel and Palestine. Last night’s explosion at a Gaza hospital, which killed hundreds, has raised the stakes of the conflict and, according to some analysts, reduced the chances of a negotiated solution. Against this background, there is now a higher probability that other countries in the region, such as Iran, could end up involved in the dispute. This scenario would almost certainly affect the global oil supply and could drive the price of the barrel to levels above the 100 USD mark.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source:ActivTrader
EUROPEAN SHARES
European equities fell on Wednesday, following a mixed Asian session, as market sentiment remains uncertain ahead of major macro developments today.
The risk-off trading stance prevailed after investors witnessed a resurgence in tension in the Middle East following an attack on a hospital in Gaza, which led to the cancellation of the summit planned between US President Biden and Arab countries, reviving fears in the region.
Elsewhere, investors are also slowly switching their focus back to inflation and monetary policies, especially after the UK CPI came out above expectations, which sparked worries of more tightening to come from the BoE.
European inflation will also be under the spotlight today, with traders awaiting the next CPI report with expectations of a significant drop from 5.2% to 4.3%, which could help support hopes of a less aggressive stance from the ECB and provide relief to EU equity traders.
Finally, investors will also be keen to assess the potential monetary outlook on the other side of the Atlantic with speeches from several Fed officials due, alongside the Beige Book release and corporate results from big names such as Morgan Stanley, Netflix and Tesla.
Technically speaking, the STOXX-50 index continues to trade sideways inside its 60-point wide range between 4,165.0pts and 4,115.0pts, as investors wait for further catalysts to drive market sentiment into a much more directional stance.
Pierre Veyret – Technical analyst, ActivTrades
Source:ActivTrader
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